Whirlpool Corporation completed a public offering of 6,884,057 common shares at $69.00 each and 10,500,000 depositary shares tied to 8.50% Series A mandatory convertible preferred stock at $50.00 per depositary share. The combined net proceeds are expected to total $963 million, with $454.9 million from the common shares and $508.1 million from the depositary shares.
The equity raise comes after Whirlpool reported a Q4 2025 revenue miss and a 220‑basis‑point decline in gross margin to 14%. The company also announced a significant drop in net income and EPS, with earnings of $1.91 per share beating estimates of $1.53, while revenue fell short of the $4.28 billion consensus. These results highlighted margin compression driven by tariff costs and a prolonged promotional environment that eroded pricing power.
Whirlpool said the proceeds will be used to repay a portion of its revolving credit facility and to fund strategic investments in vertical integration and automation. Management emphasized that the capital raise is part of a broader plan to strengthen the balance sheet, reduce leverage, and accelerate technology upgrades that are expected to improve operational efficiency and long‑term competitiveness.
The announcement was met with a sharp negative reaction from investors, who expressed concerns over the dilution of existing shares and the company’s ongoing financial strain. Investor David Tepper, a prominent shareholder, publicly criticized Whirlpool for what he described as a move that could erode shareholder value, adding pressure on the company’s management.
While the equity offering will provide liquidity to reduce debt and support automation initiatives, the immediate dilution and investor skepticism underscore the challenges Whirlpool faces in restoring profitability and confidence. The company’s guidance for 2026 projects modest revenue growth of about 5% and signals a focus on cost discipline and margin recovery, but the market remains wary of the short‑term impact of the capital raise.
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